shark repellent

Antitakeover Measure

Periodic or continual measures a firm's management takes to discourage unwanted or hostile takeovers. One example of an antitakeover measure is the macaroni defense, in which the company issues a large number of bonds with the proviso that they must be redeemed at a high price if the company is taken over. See also: Shark Watcher.

shark repellent

A strategy used by corporations to ward off unwanted takeovers. Examples of this antitakeover measure include making a major acquisition, issuing new shares of stock or securities convertible into stock, and staggering the election of directors. Shark repellents often benefit corporate officers more than the stockholders. Also called takeover defense. Compare show stopper. See also poison pill.

If the company enters into a "strategic alliance" or other transaction, it could implement bust-up fees, management contracts and significant shark repellents that could make it impossible for a new Board to strike a better deal for the stockholders.

In his March 9 column, Newsweek's Allan Sloan called Marriott's bundling "unfair" and said the company "wants shareholders to approve the greatest array of shark repellents - Wall Street slang for anti-takeover defenses - this side of the Great Barrier Reef.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.